Import/Export Price Indexes

U.S. Import and Export Price Indexes News Release

Transmission of material in this release is embargoed until USDL-14-0218
8:30 a.m. (EST) Friday, February 14, 2014
Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
Media contact: (202) 691-5902 * PressOffice@bls.gov
U.S. IMPORT AND EXPORT PRICE INDEXES - JANUARY 2014
U.S. import prices rose for the second consecutive month in January advancing 0.1 percent, after a 0.2
percent increase in December, the U.S. Bureau of Labor Statistics reported today. In January, higher nonfuel
prices more than offset declining fuel prices. U.S. export prices also rose in January, increasing 0.2 percent
following a 0.4 percent advance in December.
Imports
All Imports: Import prices ticked up 0.1 percent in January following a 0.2 percent rise the previous month.
The January advance was led by higher nonfuel prices, while the increase in December was driven by rising
fuel prices. Despite the recent advances, prices for overall imports declined 1.5 percent for the year ended in
January. Import prices have not recorded a year-over-year increase since a 0.9 percent rise between July
2012 and July 2013.
Fuel Imports: Fuel prices fell for the third time in the past 4 months in January, declining 0.6 percent, after
a 1.3 percent advance in December. The January drop was led by a 1.2 percent decrease in petroleum prices,
which more than offset a 14.1 percent increase in natural gas prices. Natural gas prices rose 67.3 percent
over the past 4 months. Fuel prices also fell over the past year, declining 3.1 percent. The 12-month drop in
fuel prices was driven by a 4.0 percent decrease in petroleum prices, while natural gas prices increased 26.7
percent over the same period.
All Imports Excluding Fuel: The price index for nonfuel imports advanced 0.3 percent in January, after
recording little movement the previous 4 months. The increase was the largest monthly rise in nonfuel
import prices since a 0.4 percent increase in March 2012. In January, higher prices for consumer goods;
capital goods; foods, feeds, and beverages; and nonfuel industrial supplies and materials contributed to the
overall advance in nonfuel import prices. In contrast, automotive vehicle prices decreased in January.
Despite the January increase, nonfuel import prices fell 1.1 percent over the past 12 months.
Table A. Percent change in import and export price indexes, selected categories

Exports
All Exports: Export prices advanced for the third consecutive month in January, increasing 0.2 percent,
after rising 0.4 percent in December and 0.2 percent in November. January marked the first time since
October 2012 that export prices recorded 3 consecutive monthly advances. Despite the recent increase,
overall export prices declined 1.2 percent for the year ended in January.
Agricultural Exports: The price index for agricultural exports fell 0.5 percent in January following a 0.4
percent increase the previous month. The January drop was driven by lower prices for wheat, soybeans, and
meat, which decreased 6.5 percent, 1.9 percent, and 2.2 percent, respectively. Agricultural prices declined
5.7 percent for the year ended in January, after rising 10.7 percent between January 2012 and January 2013.
The year-over-year decline in January 2014 was led by lower prices for corn, soybeans, and wheat.
All Exports Excluding Agriculture: Nonagricultural prices rose 0.2 percent in January following a 0.5
percent increase in December. In January, higher prices for nonagricultural industrial supplies and materials,
capital goods, and automotive vehicles contributed to the overall increase in nonagricultural export prices.
The price index for nonagricultural exports fell 0.5 percent over the past year, driven by declining prices for
nonagricultural industrial supplies and materials and consumer goods.
SELECTED JANUARY HIGHLIGHTS
Import Prices
Imports by Locality of Origin: The price index for imports from China edged down 0.1 percent in
January, after ticking up 0.1 percent in each of the previous 2 months. The January decline was led by a 0.2
percent decrease in computer and electronic products prices. Import prices from China also fell over the past
year, declining 0.7 percent. Prices for imports from Japan decreased 0.2 percent in January, after falling 0.3
percent in December. Import prices from Japan have not recorded a monthly advance since a 0.1 percent
rise in October 2012, and declined 3.6 percent for the year ended in January -- the largest 12-month drop
since a 3.8 percent decrease in March 2002. In contrast, prices for imports from the European Union and
Canada each increased in January, rising 0.7 percent and 0.5 percent, respectively. Import prices from
Mexico were unchanged in January.
Nonfuel Industrial Supplies and Materials: Prices for nonfuel industrial supplies and materials advanced
0.2 percent in January, driven by a 2.1 percent increase in chemicals prices. Higher prices for plastic
materials and fertilizers each contributed to the January rise in chemicals prices.
Finished Goods: Consumer goods prices increased 0.7 percent in January, led by a 3.1 percent advance in
the price index for medicinal, dental, and pharmaceutical materials. The January rise was the largest
monthly increase for the index since a 1.0 percent advance in October 1992. Prices for capital goods also
rose in January, increasing 0.2 percent. In contrast, automotive vehicles prices declined 0.2 percent in
January and 1.6 percent over the past year. The year-over-year decline in January was the largest 12-month
decline for the index since first publication in June 1981.
Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages increased 0.8 percent in
January, driven by a 4.0 percent advance in fish and shell fish prices.
Transportation Services: Import air passenger fares decreased 6.4 percent in January, the first monthly
decline since a 7.9 percent decrease in August. Lower Asian and Latin American/Caribbean fares
contributed to the January decline. The index for import air passenger fares rose 5.1 percent over the past 12
months. Import air freight prices were unchanged in January and advanced 0.6 percent over the past year.
Export Prices
Nonagricultural Industrial Supplies and Materials: Prices for nonagricultural industrial supplies and
materials rose 0.3 percent in January following a 1.1 percent advance in December. Despite the recent
increase, nonagricultural industrial supplies and materials prices fell 1.7 percent for the year ended in
January.
Finished Goods: Finished goods prices were mostly up in January. Capital goods prices increased 0.4
percent, the largest monthly advance since a 0.7 percent rise in January 2013. Prices for automotive vehicles
advanced 0.2 percent in January, after recording no change the previous 2 months. The price index for
consumer goods recorded no change in January.
Transportation Services: Export air passenger fares increased 1.5 percent in January, driven by a 12.7
percent jump in Asian fares. Despite the January advance, export air passenger fares fell 2.3 percent over the
past year. Export air freight prices rose 2.4 percent in January and 1.1 percent over the past 12 months.
Import and Export Price Index data for February 2014 are scheduled for release on Thursday, March
13, 2014 at 8:30 a.m. (EDT).

Table 1. U.S. import price indexes and percent changes for selected categories of goods: January 2013 to January 2014

Footnotes(1) Relative importance figures are based on 2012 trade values.

NOTES: Data may be revised in each of the three months after original publication.
Dash = Not available

TECHNICAL NOTE
Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres
formula and are not seasonally adjusted. Price indexes are reweighted annually, with a two-year lag in
the weights. Published series use a base year of 2000=100 where possible. More detailed index series
and additional information may be obtained at http://www.bls.gov/mxp, or by calling (202) 691-7101.
Merchandise Goods Classification Systems -- The merchandise price indexes are published using three
classification systems. Items are classified by end use according to the Bureau of Economic Analysis
Classification System, by industry according to the North American Industry Classification System
(NAICS), and by product category according to the Harmonized System (HS). While classification by
end use and product category are self-explanatory, some notes are in order for classifying items by
industry. In the NAICS imports and exports tables, items are classified by output industry, not input
industry. As an example, NAICS import index 326 (plastics and rubber products manufacturing)
include outputs such as manufactured plastic rather than inputs such as petroleum. The NAICS
classification structure also matches the classification system used by the PPI (Producer Price Index) to
produce the NAICS primary products indexes.
Import Price Indexes -- Products have been classified by the Harmonized Tariff Schedule of the United
States Annotated (TSUSA). Import prices are based on U.S. dollar prices paid by the U.S. importer.
The prices are generally either "free on board" (f.o.b.) foreign port or "cost, insurance, and freight"
(c.i.f.) U.S. port transaction prices, depending on the practices of the individual industry. The index for
crude petroleum is calculated from data collected by the U.S. Department of Energy.
Export Price Indexes -- Products have been classified by the Harmonized Schedule B classification
system of the U.S. Bureau of the Census. The prices used are generally either "free alongside ship"
(f.a.s.) factory or "free on board" (f.o.b.) transaction prices, depending on the practices of the individual
industry. Prices used in the grain index, excluding rice, are obtained from the U.S. Department of
Agriculture.
Services Price Indexes -- Starting in September 2008 the Import Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by foreign carriers from U.S. residents and are
calculated from data obtained from an airline consulting service. These data include tickets sold by
travel agencies and travel websites. Tickets sold directly by the airlines are excluded, as are frequent
flyer tickets generally. Starting in January 2008 the Export Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by U.S. carriers from foreign residents and are
calculated from data collected directly from airlines. These data include frequent flyer tickets and those
sold by consolidators. Taxes and fees are included in the Import Air Passenger Fares Index and
excluded from the Export Air Passenger Fares Index. The Air Freight Indexes are calculated from data
collected directly from airlines. These data exclude mail and passenger baggage. The scope of the service
being priced is the movement of freight from airport to airport only, and does not include any ground
transportation or port service. The Air Freight Indexes are presented using two definitions: Balance of
Payments (which represent transactions between U.S. and foreign residents) and International (which
represent transactions inbound to and outbound from the U.S.). Fact sheets specifying detailed
information for each services industry are available at http://www.bls.gov/mxp under "MXP
Publications."
Import Indexes by Locality of Origin -- Prices used in these indexes are a subset of the data collected
for the Import Price Indexes. Beginning with January 2002, the indexes are defined by locality of origin
using a nomenclature based upon the North American Industry Classification System (NAICS).
Nonmanufactured goods are defined as NAICS 11 and 21 and manufactured goods are defined as
NAICS 31-33.
Revision Policy -- To reflect the availability of late reports and corrections by respondents, monthly data
may be revised in each of the three months after original publication. After three months, no further
data revisions take place. So, for example, data released in the January release will be subject to revision
in the releases for February, March, and April.
Uses of the Data -- The primary use of the indexes is to deflate trade statistics, notably the foreign trade
sector of the National Income and Product Accounts constructed by the Department of Commerce.
Other published indexes are useful for general market analysis. For trade in international services,
Balance of Payments indexes are used for deflating National Income and Product Accounts, while
International indexes are more appropriate for market analysis. Merchandise and services indexes also
can be used to study U.S. competitiveness and to compute price elasticities, and the merchandise import
indexes by country or region of origin are useful in terms of trade analysis.
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Additional Information -- More detailed data are available on the Import/Export Price Indexes home
page at (http://www.bls.gov/mxp). For technical assistance in using the BLS Internet site, send e-mail to
(labstat.helpdesk@bls.gov). For Import/Export Price Index data requests, send e-mail to
(mxpinfo@bls.gov).
Information from this release will be made available to sensory impaired individuals upon request. Voice
phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.